Now, for the other leg of NBA commissioner Adam Silver’s expansion mission.
Investors interested in buying into Silver’s planned NBA Europe have until March 31 to submit a non-binding bid for a license, which will provide to Silver’s bosses in the U.S. and Canada the clearest picture yet of who could potentially be involved in the European league, how much money the NBA can expect to generate by starting a league overseas, and if, as expected, it’s prudent for them to give Silver the OK to launch the new league.
Sources with direct knowledge of the investors’ plans have said the Saudi Arabian Public Investment Fund, which has a massive sports portfolio and started LIV Golf, is preparing to submit a bid for a new London-based team. Qatar Sports Investments, which owns soccer giant Paris Saint-Germain, is prepping one for a new team in Paris, and Gerry Cardinale’s RedBird Capital, which owns Italian soccer powerhouse AC Milan, will submit a bid for a new team in Milan.
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Each of those bids for NBA Europe franchises, sources with knowledge said, is expected to be an independent bid to create new teams. There has been widespread interest from existing European clubs, such as Alba Berlin and ASVEL (near Lyon, France), but it was not known immediately whether those clubs might partner with additional investors to meet the NBA’s asking price for a license.
The NBA established a virtual data room this season to guide its NBA Europe bidding process. And over 100 potential bidders have been granted access to a data room for a license. The NBA announced its plans to license teams in 12 European cities, listed above, as well as Rome, Munich, Barcelona, Madrid, Manchester (England), Athens and Istanbul. Multiple license bids are expected in at least a few of the NBA’s targeted cities.
There are also four planned at-large bids for NBA Europe, obtained on merit and available to virtually any professional team in Europe that competes in a domestic league. Silver wants to open play in NBA Europe in October 2027.
On Monday, The Athletic reported that the NBA’s Board of Governors will vote March 25 on whether to permit Silver to move forward with possible NBA expansion in Las Vegas and Seattle. The league’s governors will also receive an update on NBA Europe at the same meeting in New York, according to sources briefed on the meeting agenda, though no votes will be taken because not all bids will have come in yet.
Once the March 31 deadline passes, the NBA will have a definitive list of who wants a license and how much those investors might be willing to pay. Silver will pursue license fees on a sliding scale based on market size, with London potentially the largest at over $1 billion.
The revenues that NBA Europe generates for the NBA could offset any losses incurred from domestic expansion. If the NBA expands, the 30 current teams would dilute their share of the league’s overall revenue, including the $77 billion media rights deal that began this year. License fees and a media rights package in Europe should be worth billions to NBA owners on this side of the Atlantic Ocean.
Silver also wants new arenas for many of the teams that will join NBA Europe. Saudi Arabia’s Public Investment Fund, which owns English Premier League club Newcastle United, would build one in London. Qatar Sports Investments would build one somewhere near Paris, and Cardinale’s RedBird owns a plot of land in Milan and is looking to build a world-class basketball venue there, according to sources briefed on the situation. Cardinale’s firm is also building a new soccer stadium there and is otherwise heavily invested in the Milan community.
Two investment banks, Raine and JPMorganChase, are overseeing the bidding process for NBA Europe licenses. They are courting investors and managing the bid submissions; once they’re in, the banks will advise the NBA on the best offers and serve as negotiators for the league.
